Investing.com - The U.S. dollar pared losses against its Canadian counterpart on Tuesday, as declining oil prices dampened demand for the commodity-related Canadian currency, although lower expectations for an upcoming U.S. rate hike continued to weigh on the greenback.
USD/CAD eased off 1.2887, the pair’s lowest since August 26, to hit 1.2915 during early U.S. trade, still down 0.12%.
The pair was likely to find support at 1.2827, the low of August 26 and resistance at 1.3000, the high of September 5.
The Canadian dollar was hit by dropping oil prices on Tuesday, as optimism surrounding an agreement between Saudi Arabia and Russia to stabilize the oil market began to fade.
However, the greenback’s gains were limited as downbeat U.S. employment data published last Friday crushed expectations for a rate hike by the Federal Reserve this month.
The U.S. economy added 151,000 jobs in August, disappointing expectations for an increase of 180,000, while the unemployment rate remained unchanged at 4.9% this month, confounding expectations for a downtick to 4.8%.
The loonie was lower against the euro, with EUR/CAD edging up 0.08% to 1.4421.